Contract Addendum’s kind of a legal document that is used for the purpose of making changes to already existing agreement or contract without actually invalidating it. Moreover, it is added as an extra document to the original agreement or contract.
The contract addendum is recognized by different names such as:
- Amending Agreement
- Contract Amendment
When to use the Contract Addendum?
It must be used when there is a need for some minor changes in the agreement or contract. Commonly, it’s written when existing contract conditions aren’t working as decided and they need some adjustments. For example, changing dates, adding or removing the clauses, etc.
Contract Addendum can be used for the following purposes
- You want to change the existing description of a job in the Employment contract. The document containing the changes will be affixed to the contract of Employee and will be signed by an employee and the employer.
- You have hired some Independent contractors, for example, an artist or a writer to complete the task in a certain time. However, if the hired person isn’t able to work in time then the addendum will be written to make changes of date so that more time can be given to an employee to complete the task.
- If you’re a Landlord then its possible that you have signed a Rental Agreement with the tenant. And you want to do some renovations in the house. For this purpose, you need to write an addendum so that the changes can be made to contract for setting new terms.
Moreover, if you want to do some major changes you may need to change the entire structure of a contract and have to make a new document. For example, if you have decided to move to some other suite then instead of changing the main information like address, charging amount, deposit amount, etc, you can make a new contract.
Information to include in Contract Addendum
It must have the information listed below:
- Involved parties names present in the original contract, whether it’s the name of individual, organization or cooperation has to be included in Contract Addendum.
- It must have the same font size, typeface, margins, etc, as of the original contract. Anyhow, there is no such legal requirement for this. Moreover, its always recommended that changes should be deliberate.
- Both parties must sign the document on a specified date. This is important for keeping the record.
- Original document description has to be included, including the details of the date on which the agreement was signed.
The difference among Contract Addendum, waivers and consents
Contract Addendum’s used for the purpose of changing original documents in certain circumstances without compromising the entire contract. Anyhow, minor changes can be done within the original contract without writing Contract Addendum. On the other hand, waivers or consonants are voluntary agreements in order to continue the original contract even when minor terms were not upheld.
So, it can be said that the contract addendum modifies the contract while waivers excuse the small mistakes.
However, it’s possible that some parties breach the contract terms all depending upon some situations. For example, if some performer has to perform on stage at a certain time and he gets late, but the owner gives him more time to be on stage apart from firing him for violating the contract terms.
Contract Addendum Related Documents:
- Partnership Amendment
It’s used when changes have to be made in some prevailing Partnership agreement.
- Lease Amendment
It’s used when some changes have to be made on the existing agreement that is in between some tenants and the landlord.
The assignment is used for transferring the rights, property, or any obligations to some other person.
- Lease Assignment Contract
The lease assignment is used by tenants to transfer the property interests to some other party.
Template of Contract Addendum
THIS AGREEMENT’S IS DATED ON ______________________
- ___________________________ and ___________________________ parties had a contract on date ______________ for purpose of _______________________
- Both parties want to amend the contract as agreed before.
- This amendment is the first one.
- References added to this contract are the same as to original one.
- Orignal contract is changed as follows
- Apart from the above-mentioned change, there is no additional charge in the contract.
- Capitalized terms are not mentioned in the agreement. The headings in the agreement are included for both parties’ convenience and must not be considered when interpreting the agreement. Words added in singular form have the same meaning in plural form. Additionally, words used in masculine form means the same in feminine also. Moreover, there is no gender regard stated or intended in agreement in any case.
- It is stated that all of the proceedings related to this agreement will take place according to the laws stated in the constitution. There would be no favors during the process of jurisdiction and a free and fair trial will be conducted if needed.
In Addendum of this Contarct the parties have signed their signatures on ______________ day of ______________.
WITNESS: ______________ _________________ (party)
WITNESS: ______________ _________________ (party)